Replies to This Discussion

Permalink Reply by FairMktValue on August 21, 2013 at 11:54pm

Thank You Oliver.

Permalink Reply by FairMktValue on August 22, 2013 at 12:05pm

Thanks again Oliver,

I find these plats to be very interesting. Ton of info there (not that I understand it all). LOL

The laterals on this one are slightly off the angle or azimuth that I have seen for a lot of other plats.

(they seem to run as close to 330 degrees N most of the time, this one runs at about 310).

Laterals are not real long , under 4000'.

I am assuming all this is because a parcel to the north is not leased. (Ya, I could go to the County Recorder site and look it up, slow internet and tooo lazy). 

Don't know but the lateral runs awfully close (49' I believe) to the property line. In PA I guess they can go right up again it. Not sure but 300' seemed to be how far they think they are sucking gas. Some where on here I thought I read that in OH the law is 500' from unleased property. I need to do a little research on that.

Could be that the "unit" has not actually been declared yet and the parcel to the N and one to the S will be included.

Could be just some very shrewd lease terms getting 100% of at least the first couple wells off the pad. Hmmmm..... Not that I have 500 acres. (don't I wish LOL)

Anyway, I enjoy looking at this stuff just on the off chance that I may be able to figure out what Rex is really up to. A little insight as to how they operate may allow me to make a few educated guesses before I sign on the line.

"You want to make sure you get this right the first time, as there are no second chances."

Oliver

I am quoting you from another post because that sentence really, really, hits the heart of the matter. I am not going to ramble on here because I have something else I "should" be doing.

But with your permission I may start a thread with that title and bore yinz all to death.

Cheers 

Permalink Reply by Oliver Perry on August 22, 2013 at 2:38pm

FMV,

You're welcome. I'm happy to help provide the good folks in Middlesex with these documents. I think the lateral angle is within the normal range, as you said they usually run between 310 - 330 degrees, these are 313. I attached a plat from the XTO Welter 1H well in Donegal. It's angle is about 290 degrees, which is the furthest deviation from the norm that I have seen.

I agree the laterals are not very long, but I think they are typical for REX. I would guess that length is best for their fracking technique. You are also correct that the 25 acre parcel to the north is not leased. With the well bore running so close to his property line I guess they would be draining some gas from that corner of his property. There is no set-back law in PA but I believe the O&G companies like to have a couple hundred feet buffer most of the time. I wouldn't be surprised if Mr. Stehle is in lease negotiations with REX right now, I think REX would like to have that parcel under lease. 

I have heard the fracking goes out 200 - 300 feet from the well bore. The set-back law in Ohio is 500' and 1,000' between well bores. Since you apparently like looking at these plats as much as I do, check out the attached Hess plat from over in Guernsey County, Ohio.

Feel free to start a thread with that title. I don't think some people realize that when they sign a lease, their property is most likely going to be tied to that company for much longer than the primary term of that lease. And if they sign a lease that allows deductions, they could lose half of their royalties.

 

Attachments:

• XTO - Welter Unit 1H.pdf, 278 KB
• Hess Ohio - Multiple Unit.pdf, 3.6 MB

Permalink Reply by FairMktValue on August 23, 2013 at 11:04am

Oliver, 

I do indeed enjoy looking at the plats. I find them fascinating. It is amazing to me how they can curve and bend that whole thing and then hit just the right spot to run the lateral. I believe the technology is just going to improve. There is a lot more recoverable gas down there than the landman will admit. It may take a 100 yrs but they are gonna get it. Just hoping the landowners get their fair share.

I have had something rattling around in my head like dried beans in a gourd all day long - I gotta get it out,

That 49' setback from the N parcel just bugs the heck outta me. Rex is being awful aggressive going that close. This may end up being a moot point in that they may already have leased and it has not been recorded yet, or they are fairly certain they will have leased by the time they drill the 1H.

There is no setback in PA so they are likely entirely within their rights to go that close.  If it was my parcel I would be quite upset none the less. 

The lateral may not be under "my" ground but they sure are fracking & cracking "my" rock. 

I Googled "how far does a frack crack go" and the answers were all over the place.

From possibly 2, 300 ft to many kilometers. So just going by Rex's target well spacing of 750 feet, I am gonna say 300 feet would be a fair distance. Not 49.

My question would be " If they cannot disturb my surface without a lease how can the crack and disturb my rock 5000' feet down?"

The laws are way behind the technology.

Permalink Reply by FairMktValue on August 23, 2013 at 11:39am

From possibly 2, 300 ft to many kilometers

Thats 2 or 300 feet not 2,300.

Permalink Reply by Oliver Perry on August 23, 2013 at 1:42pm

I believe that is exactly why they like to have a couple hundred foot buffer. I have heard of possible litigation related to "fracking trespass". I would also be upset if an O&G company drilled a lateral that close to my property line.

I think we will see that parcel leased by the time REX declares a unit there. I hope Mr. Stehle can get a fair lease out of REX if he so desires. On the other hand, some people have zero interest in leasing their land at any price, and I respect those that make that choice.

Permalink Reply by FairMktValue on August 24, 2013 at 12:53am

"fracking trespass".   I like that !!!!   LOL

Litigation or not it is a bad PR move. It may cost too much for the average guy to litigate but I would be screaming loud and hard. The press and anti frackers love a story like that. Not a good move for the industry.

some people have zero interest in leasing their land at any price, and I respect those that make that choice.

Absolutely !

Oh well, may turn out to be a moot point, they have not fracked it yet.

Another good reason to keep lookin at those plats !!!!!

 

Permalink Reply by FairMktValue on August 28, 2013 at 11:44am

Took a rainy "Sunday" drive today and went by the Kennedy Pad.

Those boys are gettin er done!

Road is done and I could see embankments either for a retention pond or the pad itself up on top of the hill.

Rex may drill that this year maybe.